What is Deal Funding
Deal funding is a unique financing arrangement where an investor or investment firm provides the capital needed to close specific real estate deals, often as a collaborative partnership. Unlike traditional loans or hard money lending, deal funding typically involves profit-sharing rather than fixed interest payments. This structure allows investors to secure the funds required for a project, such as land flipping, without the burden of monthly payments. Instead, repayment occurs only after the property is successfully sold, with profits split between the parties based on their agreed terms. Deal funding combines capital and expertise, as the funding partner often brings market knowledge and experience to the table, reducing risks and increasing potential returns for both sides.
How Our Land-Flipping Partnership Works
Here’s how our land-flipping journey together unfolds, step-by-step:
- Spotting a Hidden Gem: Our partner kicks things off by finding a promising property — a piece of land with untapped potential that’s just begging for a new owner. You lock it in under contract, securing the opportunity for us to make a savvy investment together.
- Digging Deep in Due Diligence: With the property under contract, you go into detective mode, doing a thorough due diligence sweep. From zoning and environmental factors to accessibility and market trends, you ensure this land is as good as it looks on paper, verifying every detail to minimize any surprises.
- Securing the Deal: Confident in the property’s potential, we step in with the capital to purchase it. This collaboration means we’re taking that well-researched leap together, acquiring the property that’s primed for a profitable flip.
- Ready, Set, Sell!: Now, it’s your turn selling the property. Leveraging the market insights, you present the property to the world, attracting the right buyers and securing a profitable sale in record time.
- Celebrating Success, Together: With the property sold, it’s time to reap the rewards. We split the profits, reflecting the efforts and resources each of us invested along the way. It’s a win-win, and we’re already on the lookout for the next great opportunity!
Advantages of Deal Funding for the Land-Flipper
For land-flippers, deal funding provides a balanced combination of flexibility, risk minimization, and access to strategic capital, making it an ideal option for scaling operations and improving profit potential.
- Profit-Sharing Model: Deal funding is structured around a profit-sharing agreement instead of a fixed interest rate. This means that our return depends on the project’s success, aligning the incentives with you and making it a true partnership.
- Access to Larger Capital Pools: With deal funding, you can secure the capital needed for more ambitious or multiple projects simultaneously, enabling growth and expanding your portfolio without relying solely on personal funds or credit.
- Shared Expertise and Risk: We bring valuable market experience and industry insights to the table, contributing to better decision-making. By sharing in both profits and risk, we’re incentivized to help mitigate challenges and maximize project potential.
What Land Flippers Are Saying
Read what other land flippers have to say about their experiences.